ASX-listed Lotus Resources has announced that results of a Definitive Feasibility Study (DFS) to resume production at Kayelekera Uranium Mine in Karonga, which is currently under care and maintenance, have confirmed the mining project as a low-cost, quick restart uranium operation.
“The Restart DFS has confirmed that Kayelekera ranks as one of the lowest capital cost uranium projects globally whilst also having the ability to quickly recommence production (15 months development for construction/refurbishment) once a Final Investment Decision (FID) has been made,” reads a statement from Lotus announcing the DFS results.
Lotus MD Keith Bowes says with the Restart DFS now complete the Company looks forward to continuing its work with the Malawian government to secure a Mine Development Agreement that will support the Project financing and shareholder returns appropriate for the scale of investment.
Minister of Mining Albert Mbawala said in his previous visit to Kayelekera that Malawi is expected to get more benefits from the mine with the current mining and taxation laws in place.
Malawi’s benefits will include 35% corporate tax, five percent royalties, Pay as You Earn, Resource Rent Tax and other taxes to be paid by the investor.
Government also stands to get dividends from its shareholding in the mine as under the Mines and Minerals Act of 2019, itis free to acquire up to 10% free equity in large scale mines.
Besides, Lotus has indicated in the Restart DFS results that 600 jobs will be created by the mine for the local community and the company will execute development projects in the area as part of a community development agreement and corporate social responsibility.